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What is the 80-20 rule in trading?


(@elias)
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What is the 80-20 rule in trading?


   
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(@elias)
Illustrious Member
Joined: 5 months ago
Posts: 4277
Topic starter  

In investing, the 80-20 rule generally holds that 20% of the holdings in a portfolio are responsible for 80% of the portfolio's growth. On the flip side, 20% of a portfolio's holdings could be responsible for 80% of its losses.


   
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